Tips to help you get a strong credit score
Having a less than perfect credit score isn’t the end of the world. However, it’s important to look at ways to see how you can improve your credit score so that you’re putting your best foot forward when you next apply for credit.
Here are some savvy tips to help you build and maintain a strong credit score.
Make all your repayments on time
This seems pretty obvious, but it’s worth repeating. Make all your repayments on time! Research by Experian has found that credit scores can drop by 22% following just one missed credit card repayment. This drop increases to 26% with two missed credit card repayments and a whopping 42% for those with three or more missed credit card repayments within three months. If you’re behind on your payments, get up to date ASAP.
Limit applications for new credit
Each time you apply for credit, the credit provider can do a credit check. This credit check can be recorded on your credit report, and in turn, impact your credit score. If you’re shopping around for credit and apply for multiple accounts in a short timeframe, this is a red flag to potential credit providers, and your application may be rejected. Think twice before you submit your application and only apply for credit if and when you really need it.
Check and monitor your credit score & credit report
How will you maintain a strong credit score if you don’t know what it is? It’s important to check and monitor both your credit score and the information on your credit report, not only to track your progress and identify problem areas, but it can also help you identify if your identity has been compromised.
Bonus tip: You can check and monitor your Experian credit score and credit report for free at Credit Savvy.
Found an error on your credit report? Check out our article on how to fix a mistake on your credit report. Remember, your credit score and credit report are a representation of your credit worthiness, so you want to make sure that they are accurate and up to date.
Looking for some more savvy tips? Head over to the Learning Hub to get started today!
The Experian credit bureau research was based on a consumer research survey conducted in May 2019 using an online survey method. The survey was completed by 1,000 Australians representative of the nation as a whole aged 18 and over. Visit Experian for more information.